Macy's sales fall more than expected, shares plunge

Comparable store sales during the three months ending in April were down 4.6%, which was worse than the 3.5% decline expected by analysts. Net revenue came in at $5.3 billion, which was shy of the $5.5 billion expected. The company earned $0.24 per share; analysts were expecting $0.35 per share.

Like many of its peers in brick-and-mortar retail, Macy’s is struggling to compete with low cost retailers like TJX Companies (TJX) and online retailers like Amazon (AMZN).

“In 2017, we are focused on taking actions to stabilize our brick and mortar business, including the testing and iteration of additional pilot programs in order to bring them to scale in future years,” CEO Jeff Gennette said. “At the same time, we will invest to aggressively grow our digital and mobile business, while continuing the integration of our online and offline experience to allow our customers to shop the way they live.”

For now, expect sales to continue to fall. Management said it expects comparable store sales to decline between 2.2% and 3.3% in 2017.

Elsewhere in retail, Kohl’s (KSS) first quarter report came in below expectations. Comparable store sales declined 2.7%, which was worse than the 1.1% decline expected.